Finance Ministry: CFP Budget Deficit at 3% of GDP in 2021

Finance Ministry: CFP Budget Deficit at 3% of GDP in 2021

February 1 (BTA) - Based on the monthly data on the cash
implementation of first-level spending units' budgets, the
Consolidated Fiscal Programme (CFP) showed a 3,910.4 million
leva deficit on a cash basis in 2021 (3.0 per cent of the
projected GDP), the Finance Ministry said on Monday.

The deficit was formed by a 4,033.5 million leva deficit under
the national budget and a 123.1 million leva surplus under EU

CFP revenues, grants and donations amounted to 52,340.1 million
leva, 103.5 per cent of the updated annual estimates. Compared
to 2020, the receipts increased by 8.0 billion leva.    

CFP tax revenues, including social security contributions,
totaled 40,876.3 million leva, 103.7 per cent of the tax
revenues planned for the year. Revenues from taxes and social
security contributions accounted for 78.1 per cent of the total
CFP revenues in 2021.

Direct tax revenues amounted to 8,258.4 million leva, 107.4 per
cent of the annual target. Indirect tax receipts totalled
18,976.3 million leva (104.2 per cent of the annual estimates),
of which VAT amounting to 12,978.5 million leva (105.7 per cent
of those planned), excise duties to 5,659.8 million leva (100.3
per cent of the estimates), and customs duties to 289.7 million
leva (120.1 per cent as against the annual estimates).

Other taxes, including property taxes, generated revenues of
1,411.7 million leva, which was 113.4 per cent of the annual
estimates. Social-insurance and health-insurance contributions
brought in 12,229.9 million leva, which accounted for 99.6 per
cent of the estimates for the year.

CFP expenditures, including Bulgaria's contribution to the EU
budget for 2021, added up to 56,250.5 million leva, accounting
for 102.0 per cent of the updated annual estimates.

Broken down by spending item, social and health insurance
expenditures grew the most. The monthly supplement to all
pensioners accounted for 1.7 billion leva of pension

Health insurance expenditures increased by 0.6 billion leva,
which reflects the higher spending on tackling the pandemic.
Subsidy expenditures on non-financial corporations grew
substantially, by nearly 2.7 billion leva, largely due to
payments under the programme compensating non-household end
customers of electricity, expenditures of the Energy System
Security Fund, payments under the 60/40 employment retention
measure, the 80/20 measure, the Keep Me measure, and the measure
 providing turnover support for SMEs affected by the temporary
anti-epidemic measures, which was administered by the National
Revenue Agency.

Compared to 2020, subsidy expenditures on healthcare facilities
increased by 0.2 billion leva.

The part of Bulgaria's contribution to the EU budget paid from
the central government budget by the end of 2021 amounted to
1,681.0 million leva.

The year-end fiscal reserve was 10.7 billion leva.


Based on preliminary data and estimates, the CFP is expected to
show a surplus of 940 million leva (0.7 per cent of projected
GDP) in January 2022, the Finance Ministry said.

CFP revenues, grants and donations are expected to total 4,325
million leva in January 2022, up by 612 million leva on a year
CFP tax and non-tax receipts increased by 604 million leva in
nominal terms from a year earlier. Receipts in the form of
grants and donations (mostly grants under EU programmes and
funds) were close to those reported in January 2021.

In January 2022, CFP expenditures (including Bulgaria's
contribution to the EU budget) totalled 3,385 million leva,
compared to 3,302.9 million leva a year earlier. RY/DD